Credit Suisse First Boston last week snared Robert Franz, v.p. and par trader at Morgan Stanley, adding a seasoned trader to a stocked bench in an effort to beef up its market coverage. The firm, one of the powerhouses in the loan trading market, is expanding its group because of an increase in the volume of trading among banks and institutions. Franz will be a director and senior trader working with par and stressed loans. A rival dealer noted CSFB is bucking the trend in the loan trading market. "They seem to be moving in the opposite direction of other banks, which are holding tight or scaling down," he said.
Franz will report to Bruce Ling and Don Pollard, co-heads of CSFB's syndicated loan group, and work with traders Barry Zamore, Thomas Hendrick and Michael Lau. With Franz coming in, Hendrick will be working with banks rather than institutional accounts. Market players said CSFB had been busy looking to fill the new spot and had approached James Nessel, leveraged and high-grade loan trader at Salomon Smith Barney. Pollard and a spokesman for CSFB declined to comment.
At Morgan Stanley, Franz was one of the keys in helping to build up the firm's loan trading operation over the past year. Bolstered by hires fromGoldman Sachs, Morgan Stanley was the Most Improved Desk in Loan Market Week's 2002 Best Trading Desk survey. Buysiders cited Franz as one of the desk's strengths. "[Franz] carried that desk for one-and-a-half to two years. I don't think that bringing in the Goldman guys made it a better desk," one Morgan Stanley fan said. CSFB offers Franz an opportunity, the buysider noted, adding that the bank's platform includes a larger role in new syndications. "It's difficult to argue with the decision that he made," he added. A spokeswoman for Morgan Stanley did not return calls by press time.
It has been a game of musical chairs in the loan trading market over the past seven weeks (see Trading Places on www.loanmarketweek.com). The Franz move follows Mike Sufrin's jump from Deutsche Bank toJ.P. Morgan. At Deutsche, Sufrin reported to Clay Desjardine, head of secondary par loans and trading. Sufrin now is said to be working as a salesman in both par and distressed names under Eric Rosen, who heads J.P. Morgan's loan desk. A spokesman for J.P. Morgan confirmed his arrival. Deutsche Bank officials declined to comment.
The rash of personnel moves over the last couple of months initially was sparked by Morgan Stanley's raid on Goldman. "It's obviously the domino affect," said one dealer. "Morgan raids Goldman, Goldman raids Salomon, Salomon raids J.P. Morgan, J.P. Morgan raids Deutsche." Deutsche probably will be looking to hire a replacement now, he added.